§ 56 — Requirements of reorganization plan

Illinois § 56

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 205: FINANCIAL REGULATION
• Act 205 ILCS 5/: Illinois Banking Act.

Text

A plan of reorganization for a state bank shall not be proposed under this Act unless: (1) The plan is feasible and fair to all classes of depositors, creditors and stockholders. (2) The face amount of the interest accorded to any class of depositors, creditors and stockholders under the plan does not exceed the value of the assets upon liquidation less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay in under the plan. (3) The plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action or the existence of an unsound condition. (4) Any merger or consolidation provided by the plan conforms to the requirements of this Act. (5) Any reorganized bank provided by the plan conforms to the requirements of this Act for the organization of a bank.

Legislative History

(Source: Laws 1955, p. 83.)